Both the PMA and the ILWU agree that they are unlikely to reach a deal before the July 1 expiration of the current agreement. This timing is typical, and cargo operations continue beyond the expiration of the contract. Neither party is preparing from a strike or lockout, contrary to speculation in news reports. The parties remain focused on and committed to reaching an agreement.
They said:“Cargo operations continue beyond the expiration of the contract, contrary to speculation in news reports.”
Nonetheless, all related parties have been preparing for the worst. The past West Coast labor negotiations have had varying degrees of impact on the supply chain.
In this year’s, the PMA and ILWU still have difference on the automation and worker payment, without progress currently. Per relevant people, if the fundamental issues concerned by the negotiating parties cannot be resolved, disputes will continue to arise in the future and may cause serious reactions on supply chain.
The traditional peak season of sea transportation will be coming in August and November, with the unlock in Shanghai, the commodities circulating in the international trade market are gradually being released. If the parties fail to get an agreement, the port congestion may become more serious, which will bring a heavy blow to import and export trade. We all hope that the negotiation between both parties can reach an agreement at an earlier date.